Sandbanks is one of the world's most expensive places to live, but even it is not immune to the credit crunch with two properties facing repossession, it has been revealed.

The owners of the luxury homes are part of a rise in numbers who are being forced to hand their keys back to lenders after failing to keep up with their mortgage repayments.

Latest figures show repossessions have increased by 71 per cent, with one home being repossessed every 11 minutes.

A total of 11,054 homes were repossessed in the three months to the end of June, compared with just 6,476 during the same three months of 2007, according to the Financial Services Authority.

The owners of a five-bedroom home in Sandbanks, Poole, got into trouble after their property investment business was hit.

Local reports suggested they could no longer afford the £6,000-a-month repayments and their home was reclaimed by Clydesdale Bank.

Tailor Made are selling the property with a £1.1 price tag, compared to the £1.6 million paid less than two years ago.

Buyers have already expressed interest but were looking for substantial discounts.

Robert Dunford, a partner at the Sandbanks-based property agents, said: "They are the first two repossessions in 14 or 15 years in Sandbanks."

Neighbouring Panorama Road, known as millionaires' row, boasts the fourth highest land value, by area, in the world with residents including Tottenham Hotspur manager, Harry Redknapp.

It comes after an auction in Cardiff of 74 houses and plush apartments failed to sell one lot.

Some apartments which had originally been valued at £200,000 were being offered for as little as £30,000 - but there were still no takers.

Latest research shows that a quarter of a million private homes are standing empty.

Almost 280,000 homes are in disrepair or have been left empty for more than six months, according to Halifax, Britain's biggest lender.

It said the North West has the highest number of empty homes at 61,450, accounting for 22 per cent of all the empty homes in England.

Martin Ellis, chief economist at Halifax, said: "It is concerning that the existence of empty homes remains a significant problem in a number of areas, particularly in the North of England."

Adam Sampson, chief executive of housing charity Shelter, said: "While many of these empty homes are only out of use temporarily while they await refurbishment or a new tenant, with such a desperate shortage of housing in the UK and 1.6 million households currently on council house waiting lists, it's shocking so many homes are lying empty and unused for years at a time."